New technology has always benefitted from government investment, and electric vehicles (EVs) are no exception. In his recently announced infrastructure plan, President Joe Biden is including billions to expand the nation’s EV market.
Electric vehicles are riding a wave of popularity and growth nationally and globally. The Biden Administration wants to build on that momentum and harness the technology's job creating and clean energy potential.
On March 31, Biden announced his ambitious plan to repair the nation's aging infrastructure and jumpstart the economy, calling it the “American Jobs Plan.” The nearly $2 trillion infrastructure plan is far-reaching.
The administration’s proposal includes funding for transportation, drinking water, buildings, manufacturing and caregivers.
Of note, the plan includes a sizeable investment in electric vehicles. Included in the plan to modernize the country’s roads and highways is a $174 billion investment to expand the nation's EV market and win global competition. If the plan is enacted into law by Congress, it could create significant opportunities for electrical contractors.
The plan will enable automakers to regain their competitive edge in all aspects of domestic supply chains, starting with basic raw materials. The administration wants to help them retool factories and create jobs making batteries and cars.
The plan is intentionally pro-American. It is designed to increase domestic demand by providing point-of-sale rebates and tax incentives for consumers who purchase American-made EVs.
Recognizing the importance of having adequate infrastructure to support nationwide adoption of EVs, and taking inspiration from the federal government’s investment in the interstate highway system more than 50 years ago, the plan will also establish grants and incentives to state and local governments and the private sector to build a national network of 500,000 EV chargers by the year 2030.
The president is also not content to let market forces complete the transformation to clean cars. He wants the federal government to lead the way. The plan will replace 50,000 diesel transit vehicles and electrify at least 20% of the nation’s yellow school bus fleet, and it will electrify the nation’s federal fleet, including vehicles operated by the U.S. Postal Service.